Public sector employers warned about changing pay structures

When it comes to implementing new pay structures, employers must carefully consider equal pay provisions, HR Magazine has warned.

The warning comes after a recent case heard by the Employment Appeal Tribunal (EAT), in which five women brought a claim against an NHS Trust, claiming that their terms for working unsociable hours were less favourable than similar terms in their male comparator's contracts.

The EAT held that when it comes to comparing pay, employers should compare terms on a step-by-step basis, and not consider remuneration as a whole figure. However, the burden is on the employer to show that for any difference in the terms of salary, gender was not a factor in the decision-making process.

Any public sector business considering a change in pay structure, or any other significant overhaul of payroll administration, are being warned to carefully consider the issues surrounding equal pay. With the burden of proof upon the employer it is important that decisions over pay adhere to stated policy and that evidence can be given to contest any claim that gender bias has taken place.

The EAT case came about after the NHS implemented a new pay structure in 2004, following the Agenda For Change job evaluation. As a result, many NHS employees brought equal pay claims for work rated as equivalent, or work of equal value, and named male co-workers as comparators when working in NHS jobs dominated by men.